PCP: keeping, returning and part-exchanging

Why the final payment changes what the figures mean.

Three amounts to separate

A PCP illustration should distinguish the deposit, regular instalments and optional final balloon payment. Use the payment count on your quote: a 48-month agreement does not necessarily mean 48 regular instalments plus a balloon. Enter fees only where they are not already included elsewhere.

Keeping the car

Ownership normally requires the final payment and any applicable purchase fee. The calculator includes these amounts, then allows for an estimated car value. Refinancing that payment would be another borrowing agreement and is not automatically included.

Returning at the scheduled end

A contractual return can avoid the optional purchase payment, subject to the agreement. Mileage and condition charges may still apply. You do not receive a resale value when you hand back a car you do not own. The tool models the normal contract end, not a legal entitlement to end early.

Part-exchange is not guaranteed equity

An illustrative £14,000 valuation against a £12,000 final amount leaves £2,000 before other charges. A £10,000 valuation instead gives a £2,000 shortfall if you choose to settle and exchange. Normal contractual return is a different route; it is not automatically charged that market-value shortfall. Get a provider settlement figure and a real valuation. For exchange, the tool models settling and disposing of the car, not a promise of how a dealer will structure a deal.

Changing cars starts another set of costs

Equity applied to the next deposit is still your money. Enter the next car’s full deposit and let the first car’s proceeds be counted separately. Otherwise the benefit could be deducted twice.

Ending early is different

Do not use the remaining instalments or the balloon alone as an early settlement figure. Ask the finance company for a dated settlement quote and the applicable process. Voluntary termination, arrears, disputes and return rights are not calculated here. MoneyHelper explains these subjects; seek appropriate independent help for your circumstances.

UK context · checked 30 October 2026. Sources: MoneyHelper: PCP explained; MoneyHelper: buying a car. Contract terms vary; these are general explanations.